China Merchants first half profit up 56.1 to US$244.2 million

HONG KONG's China Merchant Holdings, a conglomerate mostly engaged in port operations, has posted a 56.1 per cent increase in first half net profit to HK$1.9 billion (US$244.2 million) against the HK$1.2 billion profit earned in the same period last year.

Container volume at its terminals in China was up 22.5 per cent to 24,933,000 TEU, an increase from the 2009's throughput of 20,346,000 TEU.

While Hong Kong headquartered and listed, the China Merchants is domiciled on the mainland, said a company statement accompanying the results. More than 90 per cent of its non-current assets are on the mainland and 90 per cent of its revenue is derived from mainland port operations.

During the first half, EBIT from port operations amounted to HK$2.7 billion, an increase of 56.4 per cent year on year and accounting for 85.8 per cent of the overall EBIT of the group, itself an increase from 79.7 per cent in the same six-month period last year.

"In the first half of 2010, China's foreign trade showed a trend of growth recovery," said the statement. "Total value for imports and exports rose 43.1 per cent over the same period last year, with exports and imports up 35.2 per cent and 52.7 per cent respectively.

"During the period under review, the global shipping market has been recovering with noticeable increase in container traffic for all major trade routes. The group took hold of the opportunity of an uprising market and sought to continue to improve customer service qualities thereby elevating customer satisfaction," said the company statement.

The group's terminals in Hong Kong handled 3,016,000 TEU in the first half, an increase of 9.7 per cent year on year. Shenzhen Western Port Zone handled 5,568,000 TEU, an increase of 31.7 per cent year on year.

Shanghai International Port (Group) Co Ltd ("SIPG") handled 13,855,000 TEU, an increase of 18.8 per cent year on year. Ningbo Daxie China Merchants International Terminals Co Ltd handled 755,000 TEU, an increase of 46.1 per cent.

Tianjin Five Continents International Container Terminal Co Ltd handled 910,000 TEU, a decrease of 3.6 per cent.

Zhangzhou China Merchants Port Co Ltd (Zhangzhou Port) handled 229,000 TEU, an increase of 60.3 per cent.

Qingdao Qianwan United Container Terminal Limited, a joint-venture, handled 459,000 TEU.

Zhanjiang Port (Group) Co Ltd handled 124,000 TEU, an increase of 47.5 per cent.

The group raised its stake in Mega Shekou Container Terminals Limited 80 per cent, representing the final stage of the completion process in accordance with the asset restructure agreement signed with Modern Terminals Limited in December 2006.

China Merchants said it continued efforts to develop Shenzhen Western Port Zone to enhance its competitiveness. Business integration endeavours at Shenzhen Western Port Zone have helped to intensify the cooperation of container terminals within Group's Western Port Zone, namely, Chiwan Port Zone, Shekou Port Zone and Mawan Port Zone, the company said.
(Source:www.schednet.com)